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City of Centerville <br />June 3, 2009 <br />Page 16 <br />Ratio Analysis <br />The following captures a few ratios from the City's financial statements that give some additional information for trend and peer <br />group analysis. The peer group average is derived from information available on the website of the Office of the State Auditor. <br />Different peer group averages were used for Cities of the 4~' class (population 2,500 - 10,000). The majority of these ratios <br />facilitate the use of economic resources focus and accrual basis of accounting at the government-wide level. A combination of <br />liquidity (ability to pay its most immediate obligations), solvency (ability to pay its long-term obligations), funding (comparison <br />of financial amounts and economic indicators to measure changes in financial capacity over time) and common-size (comparison <br />of financial data with other cities regardless of size) ratios are shown below. <br />Ratio Calculation Source 2005 2006 2007 2008 <br /> <br />Debt to assets Total liabilitiesltotal assets Government wide 27®/° 29®/° 33®/° 29®/° <br /> 37°/® 35°/® 36°/® ~lA <br />Debtper capita Bonded debtJpopulation Government wide ~ 1 <br />,57 <br />3 ~ 1 <br />,9~ - ~ 2 <br />,394 ~ 2,® <br />4 <br />5 <br /> ~ <br />$ <br />~ <br />$ <br />2,662 ~ ~ <br />$ <br />2 ~ X <br />$ <br />2,673 ~ <br />/ <br />t9(A <br />Taxes per capita Tax revenueslpopulation Government wide ~ 422 ~ 45`~ ~ 435 ~ 5D2 <br /> ~ 33~D ~ 346 ~ 332 ~lA <br />Capital assets % left to Net capital assetsl Goverrnnentwide 79®/° 32®/° 32®/° 31®/° <br />depreciate - Goverrnnental gross capital assets 71°/® 7tU°/® 7tU°/® ~lA <br />Capital assets % left to Net capital assetsl Goverrnnentwide 32®/° 32®/° 73®/° 73®/° <br />depreciate -Business-type gross capital assets 72°/® 63°/® 63°/® ~lA <br />Represents ~~^ C'°~°, ~f Centerville <br />Peer ~r® - ,t <br />Debt-to-Assets Leverage Ratio (Solvency Ratio) <br />The debt to-assets leverage ratio is a comparison of a city's total liabilities to its total assets or the percentage of total assets that <br />are provided by creditors. It indicates the degree to which the City's assets are financed through borrowings and other long-teen <br />obligations (i.e. a ratio of 50 percent would indicate half of the assets are financing with outstanding debt). <br />40% <br />38% <br />36% <br />34% <br />32% <br />30% <br />28% <br />26% <br />24% <br />22% <br />20% <br />2005 <br />2006 <br />2007 <br />City ratio Peer group average <br />2008 <br />952.835.9090 Fax 952.835.3261 <br />www:aemcpas.cosn <br />